Although Dogecoin (DOGE) is still 45% lower than its all-time high of $0.7316 reached in 2021, DOGE has seen a significant increase of over 400% year-to-date. At the time of writing, the leading memecoin is trading at $0.404, up 5.6% in the past 24 hours. Analysts suggest that this price level marks an important turning point that could significantly impact Dogecoin's trajectory in the coming days.

The key resistance point for Dogecoin

The recent price surge has attracted significant attention from analysts. Renowned cryptocurrency analyst Ali recently shared his technical analysis of the cryptocurrency through his X account.

In the post, the analyst marked a descending channel on the price chart of DOGE. According to Ali, Dogecoin is currently testing a key resistance level. He states that a 'sustained' breakout above the $0.40 price level could push the price up to $0.43.

However, if DOGE fails to surpass the $0.40 threshold, this asset is likely to face another significant downturn that could drive the price down to $0.36 or even $0.34.

Key developments reinforce DOGE's bullish position

In addition to price volatility, Dogecoin has recently benefited from several positive developments that bolster investor confidence.

A notable example is the establishment of a new government agency called the Department of Government Efficiency (DOGE) in the United States. This acronym resembles the symbol for Dogecoin.

Additionally, the cryptocurrency fund issuer Valour has introduced a trading product (ETP) for Dogecoin. A press release uploaded earlier today states:

Valour Inc., a subsidiary of DeFi Technologies, has launched the Valour Dogecoin (DOGE) ETP on Sweden's Spotlight Stock Market, marking the first Dogecoin ETP available in the Nordics. This launch expands Valour's digital asset product suite, providing investors with access to Dogecoin, which currently has a market capitalization of approximately $59.5 billion, ranking as the seventh-largest digital asset globally.

Notably, these milestones highlight the increasing recognition of DOGE by institutions and mainstream entities, contributing to the ongoing price surge of this coin.

In addition to Ali's technical insights, another analyst, Trader Tardigrade, has shared a long-term outlook on Dogecoin. The analyst points out that DOGE maintains a recognizable wave pattern on its macro chart, predicting a potential explosive peak that could see this cryptocurrency reach highs of up to $20.